Primary Residence to Mid Term/Short Term Rental Renovations

[Josie Kelley]

Hello all,

I needed to talk this through with some seasoned individuals so I'm hoping I can get some ideas/guidance. I'm currently house hunting and in the process of lining up financing for a future house hack. I intend to keep my current residence and convert it into a rental. My dilemma is my home is need of some upgrades and repairs and I'm not sure if getting a cashout refi for the renovations is the best move. My current interest rate is 4% and I don't want to trade up to a 6+% loan. Would getting a small hard money or construction loan be more advantageous? My understanding is I would need to have a rental agreement in place for my current home before moving on to the next :/

I appreciate any feedback :)

Thanks!